They are looking for a way to allocate the cost of electric used by the manufact
ID: 3148555 • Letter: T
Question
They are looking for a way to allocate the cost of electric used by the manufacturing plant. Which of the following would be the most appropriate activity base? Number of computers manufactured by each division Dollar value of the sales for each division Square footage occupied by each division The number of employees in each division
Number of computers manufactured by each division
Dollar value of the sales for each division
Square footage occupied by each division
The number of employees in each division
Number of computers manufactured by each division
Dollar value of the sales for each division
Square footage occupied by each division
The number of employees in each division
Explanation / Answer
The typical allocation process in a multi-department company is:
According to general thinking, as we are looking for a way to allocate the cost of electric used by the manufacturing plant, Number of computers manufactured by each division will be appropriate activity base.
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